A key theme in the 2024 UK Autumn Budget was the government’s focus on education, with £11.2 billion in additional resource spending allocated to the Department for Education (DfE), bringing the total to £93 billion for resources and £6.7 billion in capital funding for 2025-26.

This £11.2 billion education uplift presents significant opportunities for the growing educational technology (EdTech) market, particularly in areas like AI-driven personalised learning, AV equipment, and VR/AR-enhanced experiences.

This report explores the intersection of education and technology, analysing trends, budget implications, and procurement opportunities for 2025-26. It also highlights the evolving EdTech ecosystem through historical contract data and upcoming expiries.

Key insights:

• A breakdown of 795 total contracts tagged to key education bodies in 2023-24, valued at over £3.4 billion.
• An analysis of 284 EdTech contracts awarded directly to suppliers over the past 3 years, valued at £837 million.
• The top 10 EdTech buyers accounted for just 12% of total contract value (£104 million), underscoring heightened competition and a diverse buyer landscape.
• Insights for 93 relevant contracts valued at over £70 million, expiring over the next two years.

The Autumn Budget announcement on 30 October 2024 highlighted a positive outlook for the DfE in 2025-26, with £99.7 billion allocated—representing a 3.4% real-terms annual growth from 2023-24.

This funding allocation is divided into resource spending or Resource Departmental Expenditure Limits (RDELs), which fund operational costs like staff wages and procurement needs, and capital spending or Capital Departmental Expenditure Limits (CDELs), which focus on long-term investments such as infrastructure and technology.

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The budget outlines several confirmed initiatives aimed at transforming education, presenting significant opportunities for suppliers in construction, facilities management, technology, and other sectors.

School infrastructure:

• £1.4 billion allocated for 100 new school rebuilding projects.
• £2.1 billion earmarked for improving the school estate.

Skills development and further education

• £950 million to enhance skills infrastructure, including £300 million for colleges.
• An additional £300 million to prepare young people with modern skills.
  £40 million to fund new foundation and shorter apprenticeships for priority sectors.

Special educational needs and disabilities (SEND)

• £1 billion (a 6% real-terms increase) to reform England’s SEND system and expand Alternative Provision.

Teacher recruitment and per-pupil funding

• £2.3 billion to boost per-pupil funding and recruit 6,500 new teachers.

These investments signal growing demand for suppliers offering solutions in areas such as school rebuilding, digital tools for skills development, SEND-specific technologies, and teacher training resources.

The DfE's consolidated annual report published in 2024 highlighted the interconnected ecosystem of executive agencies, non-department public bodies, and non-ministerial departments that support its mission.

The DfE oversees education policy and funding in England, spanning early years, schools, further and higher education, apprenticeships, and broader skills initiatives.

The diagram below, sourced from the DfE’s 2024 annual report, illustrates how funding flows through the UK public sector’s education group and the sectors under its remit.

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Individual institutions linked to the DfE play critical roles in managing their budgets:

• Maintained Schools: Funded by local authorities, these schools procure teaching aids, IT services, and classroom technology.
• Academies and Free Schools: Funded directly by the Education and Skills Funding Agency (ESFA), these schools have greater autonomy in aligning procurement with their priorities.
• Further Education (FE) Colleges: Operating independently, these institutions focus on teaching tools and vocational training equipment.
• Higher Education (HE) Institutions: While some funding comes from the DfE, they rely largely on grants and tuition fees, emphasising procurement for research technologies and e-learning platforms.

Key upstream education funding bodies

1. The Department for Education (DfE): Oversees policies and budgets supporting digital education platforms, EdTech strategies, grants, STEM initiatives, and infrastructure upgrades.
2. Education and Skills Funding Agency (ESFA): Manages DfE funding for academies, Multi-Academy Trusts (MATs), free schools, and further education. The ESFA will close in March 2025, with its responsibilities absorbed by the DfE.
3. Local Authorities: Manage funding for maintained schools and SEND services, procuring teaching resources, IT services, school facilities, and commissioned services like school transport and social care.

The DfE’s 2024 annual report outlines total operating income and expenditure by body for 2023-24. The data is directional and subject to adjustments following the Labour Party’s Spending Audit in October 2024. The next annual report, anticipated in July 2025, will provide more precise figures.

With a free Stotles account, you can click through to access further procurement insights for each body listed in the table below.

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Using Stotles’ platform, we identified:

• 795 total contracts tagged to education bodies in 2023-24, valued at over £3.4 billion.
• 143 contracts of which are expiring throughout 2025-26.
• 255 contracts worth over £1 million.

The DfE led in contract volume and award value, as shown in the table below, with significant opportunities across other bodies.

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Methodology

For this analysis, we leveraged CPV codes and EdTech-related keywords from the UK Government’s November 2022 social research report, “The Education Technology Market in England.”

Using these keywords, we extracted a comprehensive dataset of contracts awarded between January 1, 2022, and December 31, 2024. After cleaning and validating the data, we removed framework agreements to focus solely on awards.

Contract trends

Our analysis identified 284 contracts awarded to EdTech suppliers over the past three years, with a total value of approximately £837 million. While this figure covers total value of awards less than the UK Government’s estimate of £900 million annually spent on EdTech, it can be used as a directional analysis for spotting trends.

Procurement frameworks

• Framework awards: 48 contracts were awarded through frameworks, valued at £22 million.
• Direct Supplier awards: 236 contracts were awarded directly, totaling £814 million.

This highlights the importance of frameworks as a route-to-market in the public sector. Relevant frameworks for technology providers include:

• G-Cloud 14
• Technology Products and Associated Services 2
• Digital Outcomes and Specialists 4
• Cyber security services 3
• Everything ICT
• Crescent Purchasing Consortium (CPC)

SME Participation

Of the 175 suppliers awarded contracts, 28% were SMEs—a higher penetration rate than seen in central government or healthcare. This openness to smaller suppliers reflects education buyers’ willingness to diversify procurement and work with innovative providers.

Quarterly trends

Contract activity has remained consistent over the past three years. However, Q3 2024 saw the highest volume, with 34 contracts valued at £34.5 million, while Q4 2024 recorded the lowest volume (12 contracts worth £3.5 million), likely due to publication delays.

The EdTech procurement landscape is marked by a high level of buyer diversity, with 155 unique buyers participating in contract awards over the past three years. Notably:

• 103 buyers (66%) procured only one contract.
• The top 10 buyers accounted for 72 contracts, representing 25% of total contract volume but only 12% of the total contract value (£104 million).

This relatively low percentage highlights the dispersed nature of EdTech procurement and the heightened competition in this space. Suppliers face opportunities across a broad range of buyers, making it essential to tailor approaches to both high-volume buyers and one-off purchasers.

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Practical steps for suppliers to leverage these insights

• The large number of unique buyers (even though 66% awarded only one contract) underscores the importance of casting a wide net when prospecting. Suppliers should consider targeting smaller buyers who may represent untapped opportunities.
• Although the top 10 buyers contributed only 12% of total contract value, they remain critical for consistent procurement activity. Suppliers should prioritise frameworks and direct engagement with these buyers to maximise visibility.
• Aligning offerings with the priorities highlighted—digital transformation, online learning, and equipment upgrades—can help suppliers stand out in this competitive market.

The EdTech procurement landscape is highly competitive, with 175 unique suppliers competing for contracts over the past three years. However, only 36 suppliers secured more than one contract, highlighting the fragmented nature of the market.

• The top 10 suppliers by contract volume accounted for 79 contracts (28%) of total awards.
• Despite their high volume, the top 10 suppliers captured only 5% of total EdTech spend, proving that success isn’t solely measured by the number of contracts won.

Practical steps for suppliers to leverage these insights

• The low concentration of spend among the top suppliers suggests an openness to working with a wide range of providers, including smaller or niche suppliers. New entrants can position themselves by offering innovative or highly specialised solutions.
• Winning multiple contracts is not the only path to success. Suppliers can focus on securing high-value contracts, as demonstrated by the top 5 most valuable EdTech awards listed below.
• With only 36 suppliers securing multiple contracts, there is room for differentiation. Suppliers should focus on building relationships with buyers and tailoring solutions to specific procurement needs.

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Our analysis of expiring EdTech contracts reveals significant opportunities for suppliers in the UK market between 1st January 2025 and 31st December 2026. Using over 200 EdTech keywords and CPV codes, we identified 93 contracts worth £70 million, set to expire within the next two years.

This snapshot highlights substantial opportunities for EdTech suppliers to engage with educational institutions seeking innovative solutions.

Quarterly Trends:

• Q1 2025: 20 contracts valued at £4.8 million are set to expire.
• Q4 2025: 4 contracts valued at £4.1 million will expire, despite lower volume.

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‍Top buyers:

• Coventry University: £4.8 million across 8 contracts.
• Department for Education: £1.2 million across 4 contracts.
• Cambridgeshire County Council: £802k across 3 contracts.

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‍Top suppliers:

• Learning Pool Ltd: £376k across 4 contracts.
• The Saville Group Ltd: £4.4 million across 3 contracts.
• Public-i Group Limited: £356k across 3 contracts.

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These figures underscore both the diversity of buyers and the variation in contract values, from large-scale awards to smaller, more niche opportunities.

The significance of expiring EdTech contracts

Expiring contracts present a critical entry point for suppliers to:

1. Use insights into past awards to craft competitive bids aligned with buyer priorities.
2. Focus on high-value expirations in Q1 2025 and Q4 2025 to align sales strategies with procurement cycles.
3. Engage with buyers seeking to renew or replace existing solutions ajead of the expiry date.

The UK education sector presents significant opportunities for EdTech innovation and solutions. By taking a proactive and informed approach, suppliers can unlock long-term growth and contribute to the transformation of public education.

By aligning your strategy with the recommendations in this report and leveraging Stotles' platform, EdTech suppliers can effectively navigate the complexities of public sector procurement and seize emerging opportunities. Here's how:

• Engage strategically and early: Build relationships with decision-makers and key stakeholders ahead of procurement cycles. Use strategic plans and insights to anticipate educational needs and position your solutions early in the buying process.
• Craft personalised outreach: Leverage data on buyer challenges, spending patterns, and procurement goals to tailor messaging that resonates with education sector priorities. Stand out by addressing the specific needs of educational institutions.
• Target the right opportunities: Focus on high-value prospects that align with your offerings, including buyers with a history of EdTech adoption and those advancing digital transformation in education.
• Foster trust through collaboration: Engage in meaningful discussions that demonstrate how your solutions support educational outcomes. Regularly deliver value-driven insights to stay top-of-mind when buyers make procurement decisions.
• Harness data for smarter decision-making: Simplify the procurement landscape by using Stotles to identify trends, assess opportunities, and navigate complex tender processes with confidence.

Ready to position your business at the forefront of EdTech in the public sector? Explore how Stotles can help you win your next opportunity.